Cloud computing is the third party availability to computing resources, server software (physical and virtual), storage systems, configuration files, communication infrastructure, and the all files are organized at a centralized database and managed by a cloud services provider. A third-party company that provides cloud-based system, framework, application, or data storage services is known as a cloud service provider. Cloud computing has significantly changed the way of multiple industries operation by accelerating innovation and increasing the rate of business continuity. Cloud computing is important in connected cars, self-driving cars, shared mobility, deeper customer insights, and digital manufacturing. Vehicles manufactured today are no less than a supercomputer, generating a massive amount of data from the numerous sensors installed on the vehicle to obtain real-time alerts/information about tire pressure, global positioning system (GPS), temperature, and a variety of other factors. This information can be analyzed in the cloud in real time and later used for telematics, infotainment system or vehicle health display, advanced driver assistance system (ADAS), and mobility services. The automotive industry is undergoing a revolutionary change as a result of the advancement of computation and communication technologies such as cloud systems. Individual users and organizations are focusing on cloud computing, which allows them to move their data and services from local to remote cloud servers. Many businesses including Amazon, Google, Microsoft, and Dropbox have released cloud infrastructure services that have attracted millions of users. The cloud is clearly becoming a viable and systemic service to replace traditional local systems of data storage.
Global Automotive Cloud Market - Impact of Coronavirus (Covid-19) Pandemic
Even prior to COVID-19, the automotive industry faced numerous challenges such as deploying technologies in vehicles. In many markets, the market rate has fallen. Massive investments in electrification, self-driving cars, were negatively affecting revenue and profitability of automotive market. The coronavirus pandemic increased those difficulties into a crisis. Global vehicle sales have stopped, manufacturing plants have been closed, and many supply chains have come to a halt. According to an IBM report published in 2020, total vehicle sales in China fell by 80% in February 2020.The report also stated that in March 2020, factory closures in Europe resulted in production losses of over 1.9 million vehicles, affecting 1.1 million jobs. Global supply chains are being hampered by supplier shutdowns, border closures, and logistics service providers has reduced operations. The crisis has cause a huge impact on automakers to generate cash by cutting costs and increasing productivity across the entire value chain. Automobile manufacturers require to increase the investments in smarter mobility. For instance, emerging technologies such as cloud systems, artificial intelligence (AI) and 5G telecommunications should be integrated into vehicles at a higher range. These advanced technologies such as cloud, 5G, and IoT (Internet of Things) are deployed in vehicles, which is not only beneficial for customers but also for manufacturers. The technologies enhance the customer safety on road, accident alert, climate alert, and others. Moreover, the technologies enhance low operational cost and high efficiency from the manufacturers’ opinion. Thus COVID-19 has positively affected the automotive cloud market growth.
|Base Year:||2020||Market Size in 2021:||US$ 17.22 Bn|
|Historical Data for:||2017 to 2020||Forecast Period:||2021 to 2028|
|Forecast Period 2021 to 2028 CAGR:||18.45%||2027 Value Projection:||US$ 66.73 Bn|
Airbiquity, Amazon, Bosch, CloudMade, Connexion, Continental, Denso, Ericsson AB, Harman, Intellias, LG Electronics, Microsoft, Sierra Wireless, Telenav, and Verizon
|Restraints & Challenges:||
Figure 1. Global Automotive Cloud Market Share (%), by Region, 2028
North America is expected to witness a significant growth over the forecast period, owing to rising adoption of cloud in vehicles.
The automotive industry is on the verge of massive transformation. Customers have new expectations about purchasing and owning processes of products, and customers get attracted on businesses that develops new innovative products rapidly. This requires a radical shift in how auto manufacturers frame, develop, and offer products and services, interact with customers and collaborate with governments to build new infrastructure in advanced technologies. The concern of automobile manufacturers is how to move rapidly, while maintaining a sustainable business model, in order to make the investments in automotive market. Cloud computing paves the way for the automotive industry to move rapidly and build a sustainable business model for the upcoming years. North America is the leading region in the automotive cloud market. For instance, Seattle, U.S., is the center of cloud innovation and is capturing an increasing number of mobility companies such as Mercedes, GM Cruise, Uber, Lyft, Grab, and others. Microsoft and Amazon are also actively promoting automotive cloud market, and the companies have announced a number of strategic alliances with BMW, Volkswagen, Daimler, Renault Nissan, and others. For instance, Volkswagen Group of America, Inc. based in the U.S, an automobile company announced a partnership with Microsoft in 2018 to expand the development of Volkswagen Automotive Cloud, or VW.AC, one of the largest dedicated automotive industry clouds. VW.AC is aimed to provide a smart and interoperable foundation for connected vehicles, handling data from millions of connected vehicles per day with the objective of attaining connected experiences of customers.
Figure 2. Global Automotive Cloud Market Share (%), by Vehicle Type, 2028
On the basis of vehicle type, the market is segmented into passenger vehicles and commercial vehicles. Passenger vehicles is expected to reach a market share of 63% by 2028, exhibiting a CAGR of 19.15% between 2021 and 2028.
There are two types of cloud used in automotive cloud such as private cloud and public cloud. A private cloud is a cloud environment, in which all cloud computing and computing services are connected and accessible only to a single customer. The benefits of cloud computing include flexibility, interoperability, and simplicity of service delivery that are combined with the access control, security, and resource customization of on-premises infrastructure in the private cloud. The public cloud is a subset of cloud computing, in which a cloud service provider makes computing resources available to users through public internet, ranging from SaaS applications to individual virtual machines (VMs), bare metal computing hardware, and complete enterprise-grade infrastructures and development platforms.
The increasing adoption of 5G and Internet of Things (IoT) is expected to propel the market during the forecast period 2021-2028
Although the development of autonomous vehicles is receiving a lot of attention, it is difficult that fully driverless vehicles will be widely used on public roads for a long time. However, as a step toward a driverless future, connected and smart vehicles are becoming more popular. Vehicle connectivity will be used for more than just streaming content and monitoring weather in the coming years. The use of 5G and Internet of things allows vehicles to communicate with road infrastructure, other vehicles on the road, and even pedestrian crossings, nearby obstacles on the road. For instance, in 2018, the trial of connected vehicle has taken place in Australia. Telstra Corporation Limited is a telecommunications company based in Australia that develops and executes telecommunications networks as well as markets voice, mobile, internet access, pay television, and other products and services collaborated in 2018 with Texus, an Australia-based automobile company, a division of Japanese Toyota to perform a cellular V2X (vehicle-to-everything) project demonstrating the real-world effect of advanced connectivity technologies on enhancing road safety. The Advanced Connected Vehicles Victoria (ACV2) trial, sponsored by VicRoads and the Transport Accident Commission (TAC), illustrates six safety-enhancing use-cases such as emergency electronics brake lights, in-vehicle speed warning, right turn assist, red light violator warning, curve speed warning and cooperative forward collision warning. These above six safety-enhancing use-cases contain human machine interface (HMI) to alert the driver of connected vehicles about identified dangers. The project is carried out by 5G services.
This report segments the global automotive cloud market on the basis of vehicle type, deployment type, propulsion type, application type, and region. On the basis of vehicle type, automotive cloud market is segmented into passenger vehicles & commercial vehicles. On the basis of propulsion type, automotive cloud market is segmented into IC engine vehicles and electric vehicles. On the basis of deployment type, the market is segmented into private cloud and public cloud. On the basis of application type, the market is segmented into infotainment systems, telematics, fleet management, OTA (Over the air) systems, ADAS (Advanced driver-assistance systems), and others. Based on region, the market is categorized into North America, Europe, Asia Pacific, Latin America, and Middle East and Africa.
Key features of the study:
New System Launch-
Cerence Inc. is the leading global provider of automotive consultants, creating advanced, adaptable, and intuitive in-car experiences for the world's leading automobile manufacturers, announced a collaboration with Harman International in July 2021, the largest leader in connected car technology, lifestyle audio development, design and big data, cloud services, and Internet of Things (IoT) solutions. Under this collaboration, Harman uses Cerence’s embedded and cloud voice recognition, natural language generation, and text-to-speech information systems to recognize third-party applications in the Harman Ignite Store, a major connected vehicle framework that helps vehicle manufacturers to develop and maintain automotive applications and connected services.
“*” marked represents similar segmentation in other categories in the respective section.